U.S. Treasury yields rose on Thursday, led by the short end, as investors heavily scaled back Federal Reserve rate-cut bets for this year after the central bank struck a hawkish tone and flagged inflation risks. The two-year yield, which typically reflects near-term rate expectations, was up roughly 6 basis points in Asia to 3.8051%, its highest since August 2025. The benchmark 10-year yield was up nearly 2 bps at 4.2748%, while the five-year yield rose 3 bps to 3.8903%. The Fed held rates steady on Wednesday as expected but forecast higher inflation, and individual projections showed a "meaningful" number of policymakers pencilling in less easing this year than they did three months ago, with the outlook clouded by the ongoing Middle East conflict.